Head-To-Head Review: Genesee & Wyoming (GWR) & YRC Worldwide (YRCW)

YRC Worldwide (NASDAQ: YRCW) and Genesee & Wyoming (NYSE:GWR) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Risk & Volatility

YRC Worldwide has a beta of 3.73, meaning that its share price is 273% more volatile than the S&P 500. Comparatively, Genesee & Wyoming has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for YRC Worldwide and Genesee & Wyoming, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YRC Worldwide 0 1 2 0 2.67
Genesee & Wyoming 0 4 3 0 2.43

YRC Worldwide currently has a consensus target price of $16.33, indicating a potential upside of 13.58%. Genesee & Wyoming has a consensus target price of $81.25, indicating a potential upside of 3.20%. Given YRC Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe YRC Worldwide is more favorable than Genesee & Wyoming.

Profitability

This table compares YRC Worldwide and Genesee & Wyoming’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YRC Worldwide -0.22% -0.70% -0.22%
Genesee & Wyoming 6.10% 5.80% 2.45%

Institutional & Insider Ownership

85.4% of YRC Worldwide shares are owned by institutional investors. Comparatively, 96.2% of Genesee & Wyoming shares are owned by institutional investors. 3.7% of YRC Worldwide shares are owned by company insiders. Comparatively, 3.5% of Genesee & Wyoming shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares YRC Worldwide and Genesee & Wyoming’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YRC Worldwide $4.70 billion 0.10 $21.50 million ($0.35) -41.08
Genesee & Wyoming $2.00 billion 2.45 $141.13 million $2.11 37.31

Genesee & Wyoming has lower revenue, but higher earnings than YRC Worldwide. YRC Worldwide is trading at a lower price-to-earnings ratio than Genesee & Wyoming, indicating that it is currently the more affordable of the two stocks.

Summary

Genesee & Wyoming beats YRC Worldwide on 9 of the 14 factors compared between the two stocks.

YRC Worldwide Company Profile

YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).

Genesee & Wyoming Company Profile

Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).

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